To understand the Chinese FinTech landscape and put the recent events into context, Institut Montaigne is publishing a policy paper examining the regulatory path taken by the Chinese FinTech sector.įrom domestic expansion to global ambitions, how did this extremely diverse and fast-growing market evolve in China? And what is at stake for Europe? This study provides an overview of the development of FinTech in China and how the Chinese government has navigated between the needs of innovation and regulation. After a long period of hands-off approach, China is now tipping the scale towards regulation. The issuing of a new set of regulations shows that the Chinese government is seeking to strike a new balance between FinTech innovation and regulation.
The drama around Ant Group and its founder Jack Ma - notably when the company’s $37bn IPO was suspended by Chinese authorities - is only the tip of the iceberg. The years 20 mark a critical turning point in the history of the FinTech sector in China. In 2018, its FinTech investments reached USD 25.5 billion, ranking first in the world and amounting to about half of the global total of FinTech investments that year. China has one of the most dynamic FinTech markets in the world. In 2019, the global FinTech market was valued at about USD 111 billion, and is expected to grow to USD 158 billion by 2023. Especially in the case of China, FinTech has contributed to financial inclusiveness and extended financial services to a large portion of China's population that does not have traditional credit history and still lives in rural areas.
The FinTech industry aims at competing with traditional financial methods and extending the reach of financial services.
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